Stock market news live updates: Stocks continue Fed-induced sell-off

U.S. stocks extended losses Thursday after the Federal Reserve’s latest policy announcement and subsequent remarks from Chair Jerome Powell sent markets into disarray.

The benchmark S&P 500 fell 0.7%, while the Dow Jones Industrial Average shed around 150 points, or 0.5%. The technology-heavy Nasdaq Composite slid 1%. The moves follow a sell-off that saw the S&P 500 and Dow each shed around 1.7% and the Nasdaq tumble 1.8%.

The losses marked the S&P 500’s 29th decline this year between 1% and 2% – the most since 2008, which had 34 such declines for the index, per data from Compound Advisors.

In economic data, initial jobless claims edged up to 213,000 in the week ended Sept. 17 from a downwardly revised 208,000 the prior week — the lowest since May, the Labor Department said Thursday. Economists called for 217,000 claims, according to consensus estimates compiled by Bloomberg.

Elsewhere in major moves in the aftermath of the Fed’s decision, the rate-sensitive 2-year Treasury note held near 4.1%, the highest since 2007, while the 10-year remained near 3.5%, its highest level since 2011.

On Wednesday, U.S. central bank officials raised interest rates by 75 basis points for a third straight time, bringing the federal funds rate to a new range of 3.0% to 3.25% from a current range between 2.25% and 2.5%.

Policymakers also expect to lift rates higher than before and maintain that level, projecting the fed funds rate rising to 4.4% by the end of this year and 4.6% by the end of 2023. That’s up from 3.4% for this year and 3.8% previously.

U.S. Federal Reserve Board Chairman Jerome Powell pauses during a news conference after Federal Reserve raised its target interest rate by three-quarters of a percentage point in Washington, U.S., September 21, 2022. REUTERS/Kevin Lamarque

“With the new rate projections, the Fed is engineering a hard landing – a soft landing is almost out of the question,” Principal Global Investors Chief Global Strategist Seema Shah said. “Powell’s admission that there will be below-trend growth for a period should be translated as…

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